On December 31, 2006, Mauro Associates owned the following securities, held as a Journalize transactions and long-term investment. The securities are not held for influence or control of the investee.

On this date, the total fair value of the securities was equal to its cost. In 2007, the following transactions occurred.
July 1 Received $1 per share semiannual cash dividend on Mann Co. common stock.
Aug. 1 Received $0.50 per share cash dividend on Kline Co. common stock.
Sept. 1 Sold 1,500 shares of Mann Co. common stock for cash at $8 per share, less brokerage fees of $300.
Oct. 1 Sold 800 shares of Kline Co. common stock for cash at $31 per share, less brokerage fees of $500.
Nov. 1 Received $1 per share cash dividend on Scott Co. common stock.
Dec. 15 Received $0.50 per share cash dividend on Kline Co. common stock.
31 Received $1 per share semiannual cash dividend on Mann Co. common stock.
At December 31, the fair values per share of the common stocks were: Kline Co. $32, Mann Co.
$8, and Scott Co. $18.
Instructions

(a) Journalize the 2007 transactions and post to the account Stock Investments. (Use the T-account form.)

(b) Prepare the adjusting entry at December 31. 2007, to show the securities at fair value. The stock should be classified as available-for-sale securities.

(c) Show the balance sheet presentation of the investments at December 31, 2007. At this date, Mauro Associates has common stock $1,500,000 and retained earnings $1,000,000.

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Common Stock Shares Cost Kline Co. 3,000 $90,000 Mann Co. 5,000 45,000 Scott Co. 1,500 30,000